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Wed 1 Jun 2016 02:09 PM

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DP World says not ruling out another push for US port

Dubai port operator still reportedly keen on deal despite being forced to pull out of US acquisition plan in 2006

DP World says not ruling out another push for US port

Dubai-based DP World is still reportedly keen to make another attempt to acquire a US port terminal despite being forced to back out of a plan to acquire terminals in 2006 amid backlash from lawmakers in Congress.

The company’s general manager for Canada said in an interview published by the Wall Street Journal that since 2006 DP World has made significant investments in Canada.

Maksim Mihic said DP World could attempt another US acquisition if a “good value proposition” comes along but added that Canada is a better market because "you have terminals not operated by the shipping lines".

Canadian volumes dipped in the first quarter of 2016, but DP World expects them to rebound, added Mihic.

DP World owns the Centerm terminal at the Port of Vancouver and recently acquired the Fairview terminal at the Port of Prince Rupert.

In December, DP World announced plans to study a further expansion at Fairview to increase its annual container handling capacity to 2 million 20-foot containers, or TEUs, from about 1.35 million.

“There’s a lack of capacity on the west coast of Canada and vessels just keep getting bigger,” Micah said, adding: "We are investing in the long term, for the next 50 to 60 years. Canada needs a strong second West Coast port [at Prince Rupert].”

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